Regulation (EU) 2016/1011 of the European Parliament and of the CouncilShow full title

[F1 Article 23D U.K. Orderly cessation of Article 23A benchmarks

1. This Article applies to an Article 23A benchmark.

2. The FCA may by written notice impose requirements on the benchmark administrator relating to any of the following—

(a) the way in which the benchmark is determined, including the input data,

(b) rules of the benchmark, and

(c) where the benchmark is based on submissions by contributors, the code of conduct referred to in Article 15.

3. The FCA may only exercise the powers under paragraph 2 if—

(a) it considers it appropriate to do so having regard to the desirability of securing that the cessation of the benchmark takes place in an orderly fashion, and

(b) it considers it desirable to do so in order to advance either or both of the following—

(i) its consumer protection objective (see section 1C of FSMA);

(ii) its integrity objective (see section 1D of that Act).

4. In exercising a power under paragraph 2 in relation to a benchmark that is used outside the United Kingdom, the FCA may, among other things, have regard to the likely effect outside the United Kingdom of the exercise of the power.

5. The powers under paragraph 2—

(a) may be exercised so as to confer a discretion on the administrator,

(b) include power to specify when a requirement must be satisfied, and

(c) include power to vary or withdraw a requirement from time to time.

6. The powers under paragraph 2 are not limited by the market or economic reality that was intended to be measured by the benchmark immediately before it became an Article 23A benchmark (as defined in the benchmark statement referred to in Article 27), although the FCA may have regard to that when exercising those powers.

7. A notice under paragraph 2 must—

(a) explain the exercise of the power,

(b) give reasons for the decision to exercise the power,

(c) specify when the requirement (or variation or withdrawal of a requirement) is to take effect,

(d) explain how the FCA has taken account of the relevant policy statement (see Article 23F), and

(e) provide any further information that the FCA considers appropriate for assisting supervised entities to understand the effects of the exercise of the power.

8. The benchmark administrator may not change anything described in paragraph 2 unless—

(a) the FCA requires it to do so, or gives it a discretion to do so, under paragraph 2, or

(b) the FCA has given a written notice permitting it to do so and has not given a written notice withdrawing the permission.

9. A notice under paragraph 2 or 8(b) must be published as soon as reasonably practicable in the way appearing to the FCA to be best calculated to bring it to the attention of the public.

10. The FCA—

(a) must give a copy of a notice under paragraph 2 or 8(b) to the Treasury before publishing it, and

(b) may charge a reasonable fee for providing a person with a copy of a notice under paragraph 2 or 8(b).

11. In relation to an Article 23A benchmark, this Regulation applies with the modifications specified in or under Annex 4 (and see also Articles 22A(1)(b) and 23(9A)).]

Textual Amendments

F1 Art. 23D inserted (1.7.2021) by Financial Services Act 2021 (c. 22), ss. 15(1), 49(5); S.I. 2021/739, reg. 3(h)